Rivian was saved by software in 2025

In 2025, Rivian’s overall revenue grew by 8% to $5.38 billion, driven primarily by a significant increase in software and services revenue, which more than tripled to $1.55 billion. This growth was largely fueled by a joint venture with Volkswagen Group, established in 2024, through which Rivian supplies VW with its electrical architecture and software technology. The milestone-based JV resulted in a $1 billion payout to Rivian in 2025, with additional payments expected through 2027, including a projected $2 billion capital infusion in 2026 contingent on successful winter testing and other conditions. In contrast, Rivian’s automotive revenue declined 15% to $3.8 billion, impacted by lower vehicle deliveries and a drop in regulatory credit sales, although higher average selling prices partially offset these declines. Looking ahead, Rivian’s financial outlook for 2026 hinges on the launch and production ramp of its next EV model, the R2 SUV,